Delegated payments with full control: All you need to know about UPI Circle

India’s digital payments landscape has taken a significant leap with the launch of UPI Circle , a feature by the National Payments Corporation of India ( NPCI ) that enables delegated payments while ensuring security and oversight.

Designed to increase financial inclusivity and offer convenience in managing household and business payments, UPI Circle is now available on the BHIM app , with plans to expand to other platforms soon.
What is UPI Circle?UPI Circle allows a Primary User to authorise a Secondary User to carry out UPI transactions on their behalf within set spending limits. The primary user owns the bank account, while the secondary user may or may not have one.

This means individuals who are currently excluded from UPI usage—such as elderly family members, children, domestic help, or staff—can now make digital payments easily and securely, backed by someone they trust.
How it worksPrimary users have two modes of control. They can either:

• Approve each transaction individually using their UPI PIN, or
  
• Set predefined limits so that secondary users can make payments up to that amount without requiring further approvals.

This flexibility allows families and small businesses to delegate financial tasks efficiently, while still maintaining full oversight.

Despite UPI’s growth, many Indians still depend on cash for daily needs due to lack of digital literacy or access to personal bank accounts. UPI Circle addresses this gap by enabling users who don't handle their own finances to participate in digital payments safely.

According to NPCI, about 6% of UPI users make frequent transactions on behalf of others. With UPI Circle, these delegated payments become more structured, reducing reliance on cash and increasing transparency.
Real-world use casesParental oversight: A parent can authorise their child to spend on stationery or food while monitoring spending limits.

Senior citizen support: Elderly users who are hesitant about digital payments can allow children to complete the transaction remotely.

Busy households: Working couples can enable domestic help to purchase essentials on their behalf with spending limits.

Business owners: Entrepreneurs like car rental service providers can allow staff to make payments for fuel and other needs, ensuring accountability and reducing the use of petty cash.

On BHIM, UPI Circle is integrated with built-in security and ease-of-use. The app lets you choose how much control you want—transaction-by-transaction approval or pre-set spending limits—making it ideal for managing family budgets or joint responsibilities.

As per Bhimupi.org, UPI Circle is not just a convenience feature—it is a step towards financial inclusion . It brings non-users into the digital payments ecosystem while allowing experienced users to share financial access securely.

As per NPCI, UPI Circle fosters “a more inclusive and connected financial ecosystem,” making digital transactions accessible to more people, without compromising on control or safety.